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PM confirms $7bn from Commonwealth for Melbourne Airport rail

written by Jake Nelson | February 26, 2025

The Melbourne Airport rail link will run high-capacity metro trains directly to the city. (Image: Rail Projects Victoria)

The federal government has pledged $7 billion for the Melbourne Airport rail link.

Speaking at the Herald Sun’s Future Victoria event on Wednesday, Prime Minister Anthony Albanese confirmed that the Commonwealth will help foot the bill for the long-delayed project, including a mixture of new and existing funding.

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“Today as Prime Minister I give this very straightforward concrete commitment to Victorians – our government will partner with the Victorian government to fund and build the rail link to Melbourne Airport,” he said.

“We’ll do it in a way that delivers maximise benefit for people in Melbourne’s west and north, and also delivers benefit for people from Bendigo, Ballarat, and Geelong, whether they’re going to the airport or not to access the entire network.

“Our Labor government is committing $7 billion to build Melbourne Airport Rail, the next important step in Suburban Rail Loop. This includes our existing $5 billion to build the rail line to Tullamarine. On top of this we’ll invest a further $2 billion to help transform Sunshine Station.”

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A spokesperson for Melbourne Airport said the airport is “working constructively with both the state and federal governments to ensure this important piece of infrastructure is delivered for Victoria”.

The rail link, which was last year confirmed to be delayed for at least four years, was the focal point of an extended spat between Melbourne Airport and the Victorian state government over the design, with the airport favouring an underground station and the government preferring an above-ground “sky rail” model.

The airport eventually capitulated on the design, saying in July that it would support plans for an above-ground link after the federal government’s mediator, Neil Scales, sided with the state government. Design and development work subsequently began on upgrading Sunshine Station for the connection to the airport.

The airport rail link will have three stations – the interchange at Sunshine, a new station serving Keilor East and the Airport West precinct, and the airport itself. Passengers will be able to travel straight through from the airport to the city.

The government’s announcement comes as Avalon Airport again says it could have a “Luton-style” transport shuttle up and running within a few years, with chief executive Ari Suss telling the Herald Sun that both Tullamarine and Avalon need rail connections.

“Improved access to Avalon with a rapid 4-minute driverless rail shuttle connecting to the existing Melbourne-Geelong line will be a game changer,” Suss said.

“We’re not reinventing the wheel. This solution is up and running internationally – with London-Luton Airport now moving close to 20 million people annually and enabling more aviation gateway choices for passengers.

“We get this right and the public wins, with our two airports, not just offering up airline competition, but real airport competition too.”

The Victorian government has been contacted for comment.

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